Chinese Insurance Broker TRX Files for $15 Million IPO in New York

In the six months through April, TRX said its revenue reached $1.1 million, up 5% year-over-year. Its net income, in the meantime, declined in half from the same period last year.

Anthony Russo
    Dec 30, 2019 7:00 PM  PT
Chinese Insurance Broker TRX Files for $15 Million IPO in New York
author: Anthony Russo   

Tian Ruixiang Holdings Ltd., also known as TRX, has filed for an initial public offering in New York, seeking to raise up to $15 million.

Based in Beijing and operating several offices across China, the company provides a range of insurance products for automobile, commercial property, liability and life. Currently, TRX has eight branches in China, located in Xi'an, Qingdao, Beijing, Changsha, Wuhan, Taiyuan, Nanjing and Chongqing, according to its filing with the U.S. Securities and Exchange Commission on Friday

"We believe providing superior customer services to our existing and potential customers is the most important aspect of our business in terms of brand building and product differentiation," TRX wrote in its filing.

The company added, "We have designed our services to provide personalized customer service throughout the whole process of purchasing insurance, and includes the following: in-depth customer needs analysis; product and plan customization; product evaluation and selection; and claim settlement related assistance."

TRX said it plans to expand by growing to its management sales team and opening up more branches in the nation's most prominent cities. TRX currently has 45 employees, its prospectus said.

Citing data from the China Insurance Regulatory Commission (CIRC) income, TRX said that China has the second largest insurance market in the world In terms of premium income. From 2012 to 2018, insurance premiums in the country increased from $248.6 billion to $575 billion, according to the CIRC.

In the six months through April, TRX said its revenue reached $1.1 million, up 5% year-over-year. Its net income fell to $251,788 compared with $540,434 in the same period last year.

TRX said it intends to use 60% of the IPO proceeds to open new branches and recruit new employees, 20% for research development and operational funding and use the rest for general working capital.

TRX expects to list its American depositary shares on the Nasdaq Global Select Market under the ticker "TIRX."

The lone underwriter on TRX's IPO is Network 1 Financial Securities Inc.

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